Xinyang Group Founder and CEO Jin Xing: Strategic Focus Shifts to Efficiency Optimization

In November 2024, when I launched Xinyang Youth Clinic and decided to shift from an online medical aesthetics platform to a chain of light medical aesthetics clinics, the external feedback was not friendly. Some said we were overstepping, others questioned our “unsightly manner,” and some predicted that opening physical stores would not succeed. Over the past two years, doubts and debates about Xinyang have never ceased.

As of now, we have opened our 51st store, which can be considered our inflection point.

Many only see the speed but overlook the cost. Heavy asset deployment means financial pressure and phased losses. If we were only opening 50 stores, I wouldn’t choose this path, but my goal from the beginning has been to build a chain of a thousand stores, so I must become a “infrastructure fanatic.”

In the past two years, our only keyword has been: scale. In the cost structure of the medical aesthetics industry, marketing and fixed costs can be diluted through volume, but the true determinant of long-term competitiveness is the supply chain. As the number of stores increases and scale expands, our procurement volume rises, bargaining power strengthens, and we are gradually establishing a more stable supply system. Product cost structures are also beginning to optimize.

The trust in our brand and service consistency brought by scale is also changing our customer acquisition approach. Data from frontline stores shows that about 50% of new users come from referrals by existing customers, significantly reducing our marketing costs.

Previously, some investors asked me whether this model could only succeed in first-tier cities. To answer, I systematically compared operational data from stores in first-tier and non-first-tier cities. Last year in the second half, whether in terms of average transaction value or user satisfaction, the differences between cities were minimal. This strengthened our judgment: the key to the success or failure of the chain is not city or regional differences, but the standardization capability of stores and the cross-regional management system.

As scale, supply chain, and customer acquisition structures form a positive cycle, an inflection point will emerge. Besides the 50 stores, our treatment volume has also surpassed 110,000 procedures, both of which are critical inflection indicators. By 2026, our phased goal is to maintain expansion while increasing gross profit margins and achieving overall quarterly profitability for the group. This means our strategic focus will shift from pure expansion to efficiency optimization and structural improvement.

We have always advocated for “freedom in medical aesthetics.” In my view, this is not just an emotional expression but an inevitable result of industry evolution. As upstream supply continues to enrich, the market is gradually shifting from a seller’s market to a buyer’s market. Organizations with scale advantages and standardization capabilities will gain greater influence and be better positioned to lower consumer barriers.